Five lypes of banks are menlioned in the dialogue. Find them and match Ihem wilh the definitions given below.
1. A bank which regulales the supply of currency within an area, also serving as a clearing house.
2. A bank wilh which anolher bank has regular dealings.
3. A bank on which an item of .exchange is drawn.
4. A bank which makes loans for Ihc purchase or manufac- lure of induslrial products, using a repayment plan of cer≠ tificate purchased by instalment which permits higher le≠ gal rales of interest than on other loans.
5. A savings bank which is owned by the deposiliors.
Using the words in brackets as a guide, explain the mean≠ing of the following terms:
1. clearing house (checks drawn on one another, exchange,banks, an office, where)
5. "to be held liable for Hie amount" means:
a) to be the parly to whom a payment is made,
b) to be required to make payment.
6. "lo be subject lo recall at very short notice" means:
a) the money is lenl on Ihe condition that il will be re≠ turned any time,
b) the money is lenl on Ihc condition that Ibe lender will call up the borrower first.
7. "borrowing short and lending long" means:
a) small amounts of money are borrowed and large amounts of money arc lenl,
b) money is borrowed for shorl periods and lenl for longer ones. ___
2. collection (an item of exchange, obtaining payment of, the process of)
3. instalment, (an obligation, several payments on, one of)
4. endorse (to transfer ownership, the back of the document, to place one's signature on)
5. debentures (issued by a corporation, an obligation, but is, which pays interests, often unsecured)
6. to honour a cheque (payment, make, on)
7. subscribe (financing, agree, a business operation, to lake a share in)
8. rediscount (less than, at a price, sell, its maturity value, a note or other investment)
9. transit department (to do with, other banks, having, drawn, on, the collection of checks)
10. discount house (institution, the City of London, promis≠ sory notes, buys, resells)
Choose the best answer:
1. "to clear items of exchange at par" means:
a) to exchange checks between banks at their face value,
b) to make profit out of exchanging check between banks.
2. "commercial papers" in the U.S.A. arc:
a) business letters,
b) short-term obligations of industrial companies.
3. "a quotation on listed slocks" is:
a) making a bid for slocks accepted for sale on a slock ex≠ change,
b) a slalemcnl of the current price of slocks accepted for sale on a slock exchange.
4. "to endorse a check with recourse" means:
a) to be legally responsible for making payment of the amount due,
b) to endorse in such a way thai the parly which endorses it must make payment if the other parly to the transac lion refuses payment.
Say what is true and what is false. Correct the false, sen≠tences:
1. Correspondent banks make a collection charge on any item
of exchange from Iheir central banks.
2. Central banks seldom advise correspondent banks on their investments, like commercial papers and shorl-lcrm de≠ bentures.
3. Every bank which handles an item of exchange endorses ilv wilh recourse.
4. Federal laxes are paid into the United Slates Treasury.
5. Commercial banks and industrial banks must be members of the Federal Reserve System.
6. All the money which the discount houses invest has been lenl lo Ihem.
7. The proceeds of daily transactions carried out by a dis≠ count house are sufficient lo repay Ihe calls made any day.
X. Minimum lending rale is the same as Ihe Treasury bill
i). Your car is your liquid asset. K). If rales of interest are on the increase, banks are willing
to lend money for fixed periods.
Word groups.For each of the verbs listed below, find two nouns which are related to them: assist invest
Using prefixes un-, in-, dis-,etc., give negative adjectives
which are related to the, following:
Combine the words listed below into meaningful livo or three word expressions:
Fill in the blanks:
The central banking system of the United States is called
..... It differs from that of most other countries'.... in that
it consists not of one bank but of twelve and some twenty
four branches under the control of the Federal Reserve Board in Washington. The Federal Reserve Banks perform a lot of
services for ...... Checks flowing through the System are
cleared at ...... These checks are endorsed in such a way
that the parties who endorse them must make payment if the
other ..... to the transaction refuse .. The checks are
................. The Federal Reserve Banks assist their
banks in many other ways. For instance when their cash..
becomes low, the Federal Reserve Banks will accept frohr them any notes that can be sold below their value at matu≠ rity. They will accept any notes that can be...... They also
help in the .... of new bonds to replace ones that have ma≠ tured.
Demonstrate Ihe meaning of »„Ś following expressions in sentences of your own: